Key Highlights
- GeM captured a record ₹5.4 lakh crore in Gross Merchandise Value for FY 2024‑25.
- Since its launch in 2016, it has become India’s premier digital procurement platform.
- In nine years, the portal onboarded 1.5 lakh women‑led enterprises, many self‑help groups and micro‑small enterprises.
- Reforms announced on the 9th Foundation Day eliminated seller caution money, rationalised vendor assessment fees, and now exempt 97 % of transaction charges.
- The platform is expanding into new verticals such as insurance, manpower, and mine‑development operations driven by AI technologies.
Detailed Insights
The Government e Marketplace (GeM) was established to foster transparency, inclusivity and efficiency in public procurement. Over its nine‑year history, GeM has integrated a diverse ecosystem of sellers—from rural artisans to technology startups—ensuring that government buyers have unfettered access to cost‑effective goods and services. The 9th Foundation Day celebration, themed “Ease, Access and Inclusion”, highlighted several landmark reforms that simplify seller participation: the removal of the once‑mandatory caution money, a rationalised vendor assessment fee structure, and a near‑total abolition of transaction charges (97 % exempt). Events such as GeM Seller Samvad and GeM Manthan, hosted on 6 August, brought together stakeholders for dialogue and policy‑shaping. The Ministry of Commerce & Industry underscored GeM’s commitment to a tech‑first procurement model, deploying AI and next‑generation tools to enhance transparency, expanding service offerings, and providing nationwide training for state and PSU buy‑ers.
Key Concepts
- Gross Merchandise Value (GMV) – the total value of all orders placed through the platform in a fiscal period.
- Caution Money – an advance deposit previously required from sellers to secure their participation.
- Vendor Assessment Fees – charges levied during the seller registration and verification process.
- Artificial Intelligence Integration – use of AI to streamline procurement workflows and improve decision‑making.
- Digital Procurement – procurement conducted entirely online through a secure, transparent platform.